Wearables Surge as Startups Attract Major Investment in 2023

The wearables sector is experiencing a notable resurgence in investment, thanks largely to the Finnish company Oura, which has attracted significant attention with its smart ring that tracks various health and wellness metrics. Earlier this month, Oura announced it secured more than $900 million in a financing round led by Fidelity, achieving an impressive valuation of $11 billion. This funding reflects the company’s rapid growth, with expectations to reach $1 billion in sales by the end of the year.

Broader Investment Landscape

Oura is not alone in this revitalized interest in wearables. According to data from Crunchbase, a total of 18 startups focused on wearables have received significant funding in the past year. These innovative companies are exploring a variety of applications, particularly in health monitoring, while also tapping into the current AI boom for consumer products.

One standout is Xpanceo, a Dubai-based startup that has developed smart contact lenses featuring a microdisplay and external sensors to provide real-time information to users. This four-year-old company raised $250 million this summer, achieving a valuation of $1.35 billion. Another notable player, Nothing, which specializes in Android smartphones and earbuds, recently closed a $200 million Series C funding round. The company aims to create an “AI-native platform” where hardware and software converge, with plans to integrate its technology into smart glasses.

Interestingly, the wearables market is not limited to human applications. Halter, for example, offers a unique solution combining smart collars and virtual fencing to help ranchers manage their cattle. The company secured $100 million in Series D funding this summer, reaching a valuation of $1 billion.

Health and Medical Innovations

Investment in health-focused wearables remains strong, as evidenced by two established firms securing $100 million each in funding this year. Biolinq, based in San Diego, has developed a wearable biosensor that continuously measures glucose levels beneath the skin’s surface. This startup raised its funding in March 2023. Similarly, VitalConnect, located in San Jose, California, specializes in wearable patches for remote cardiac health monitoring and completed a funding round of the same size in February 2023, led by Ally Bridge Group.

Another intriguing innovation comes from Epicore Biosystems, which is developing a wearable device that tracks biomarkers in sweat to assess hydration, nutrition, and stress levels. This diverse range of applications showcases the expanding potential of wearables in health monitoring.

The growing interest in wearables also faces competition from major technology companies. Giants such as Apple, Google, and Meta are investing heavily in this space, introducing products like the Apple Watch and Google’s Fitbit. Apple’s latest offering, AirPods with live translation, exemplifies the advancing technology in wearables.

Despite this competition, startups retain the agility to innovate and refine their products before reaching a broader audience. By initially targeting early adopters, these companies can develop unique offerings that set them apart from larger corporations, allowing them to find their niche in this growing market.